Course Overview Financial Management And Reporting
Financial management is important in most capital-intensive where financial decisions are closely tied to asset utilisation, operating costs, and shared services cost allocation across business units. Learning financial management and understanding financial reporting to equip many finance and business professionals in a data driven digital economy.
This Financial Management course also refreshes financial reporting, analysis and costing skills for staff who influence budgets that need both technical grounding in Malaysian financial reporting standards (MFRS) and the ability to interpret numbers in the context of any business operations.
Pre requisite: Participants are required to have basic analytical skill, access to excel and possess basic numerical and computing skills as there will be hands on exercises calculations.
Who should attend: Operation Managers, Branch Managers and Team Leads (non-finance background), Finance professionals (junior to senior roles) involved in budgeting setting and costing decisions. This can extend to the management support services staff overseeing shared/recharged costs
Course Objectives
On completion of the Financial Management programme, participants will be able to:-
- Read and interpret key financial statements with confidence.
- Apply relevant operational key performance indicators and also statutory financial MFRS provisions affecting transportation and warehousing assets.
- Analyse cost structures unique to any business operations, warehousing, and support services.
- Use financial ratios and relevant operational KPIs to support operational decision-making.
- Contribute meaningfully to budgeting, forecasting, and cost control initiatives.
Training Approach
Where appropriate, activities will include the following:
- Interactive Lecture
- Facilitated Group Discussions
- Practical hands on exercises using excel and other related presentation tools
Course Content
Module 1: Introduction to Financial Management & Reporting in Malaysia (1 hour)
- Explain the purpose and users of financial statements (management, Bursa/SSM, bankers, customers, tax authorities).
- Differentiate financial accounting vs. management accounting and their relevance to company business operations.
- Identify key regulatory bodies (SSM, MASB, IRB) and reporting obligations for a Sdn Bhd entity.
Module 2: Understanding the Three Core Financial Statements
- Interpret the Statement of Financial Position, focusing on fleet assets, warehouse property/equipment, receivables (customer billing), and payables (suppliers or vendors).
- Interpret the Statement of Profit or Loss, distinguishing different revenue or other income streams
- Interpret the Statement of Cash Flows and explain why a profitable company can still face cash flow strain
Module 3: Key relevant Malaysian Financial Reporting Standards (MFRS)
- Apply MFRS 16 (Leases) to assets leases — right-of-use assets and lease liabilities.
- Apply MFRS 116 (Property, Plant & Equipment) to depreciation policies for various movable and immovable assets.
- Apply MFRS 15 (Revenue from Contracts with Customers) to recognise revenue contracts (point-in-time vs. over-time recognition).
- Apply MFRS 137 (Provisions) to claims, contract penalties, and warranties
- Discuss impairment considerations for ageing assets (MFRS 136 overview).
Module 4: Cost Structures
- Classify costs into fixed, variable, and semi-variable categories specific to key industries in primary, secondary and tertiary sector
- Differentiate direct costs (per unit/per job) from indirect/overhead costs (example HQ support).
- Explain cost allocation methods for shared Management Support Services recharged to various business decisions
- Calculation of cost per unit or cost per service and importance of such financial indicators.
Module 5: Basic Budgeting & Forecasting for Logistics Operations
- Explain the budgeting process and its link to strategic planning at any organisation.
- Build an operating budget incorporating fuel price fluctuation, asset expansion, upgrade and replacement plans
- Apply variance analysis to compare budgeted vs. actual fuel costs, maintenance costs, and headcount costs.
Module 6: Costing & Pricing Decisions
- Apply break-even analysis to forecast.
- Evaluate Total Cost Ownership (TCO) of a asset and capital expenditure investment decision options.
- Use contribution margin analysis to evaluate whether to accept a new investment, revenue contract at a given rate.
- Evaluate make-or-buy / lease-or-buy decisions (e.g., own asset vs. outsourced services; own warehouse vs. third-party logistics (3PL) space).
- Assess relevant costs vs. sunk costs in asset replacement.
Module 7: Financial KPIs & Performance Dashboards for Management Reporting
- Identify KPIs relevant to business and industr
- Link financial KPIs to management support services performance (cost recovery rate, service level cost efficiency).
- Design a simple monthly management reporting dashboard combining financial and operational KPIs.
Module 8: Internal Controls for reducing financial red flags & fraud risk
- Identify common fraud/leakage risks like pilferage, fictitious mileage claims, excessive overtime claims and warehousing (inventory shrinkage, phantom stock)
- Explain basic internal control measures (segregation of duties, approval matrices, reconciliation practices) suited to a any SME/group structure.
- Action planning and review internal control rules using SOAPSAM model
